Deutsche Bank Unit Sued Over $183 Million in Securities

By David McLaughlin -
Sep 27, 2012

A Deutsche Bank AG (DB) unit was sued by
a trustee for mortgage-bond investors over $183 million in
defective loans backing the securities.

DB Structured Products breached promises about the quality
of the loans that were pooled and packaged into securities,
trustee HSBC Bank said in a filing today in New York State
Supreme Court in Manhattan.

A review of loans indicate problems “may be pervasive and
systemic across the loan portfolio,” HSBC said. The bank seeks
an order requiring DB Structured Products to repurchase loans,
according to the filing.

Duncan King, a spokesman for Frankfurt-based Deutsche Bank,
said the bank was reviewing the filing and declined to comment.